Trump civil fraud case: Judge fines Trump $354M, says frauds 'shock the conscience'

The former president was found to have defrauded lenders.

ByPeter Charalambous and Aaron Katersky
Last Updated: October 2, 2023, 10:32 AM EDT

Former President Donald Trump has been fined $354.8 million plus approximately $100 million in interest in a civil fraud lawsuit that could alter the personal fortune and real estate empire that helped propel him to the White House. In the decision, Judge Arthur Engoron excoriated Trump, saying the president's credibility was "severely compromised," that the frauds "shock the conscience" and that Trump and his co-defendants showed a "complete lack of contrition and remorse" that he said "borders on pathological."

Engoron also hit Donald Trump Jr. and Eric Trump with $4 million fines and barred all three from helming New York companies for years. New York Attorney General Letitia James accused Trump and his adult sons of engaging in a decade-long scheme in which they used "numerous acts of fraud and misrepresentation" to inflate Trump's net worth in order get more favorable loan terms. The former president has denied all wrongdoing and has said he will appeal.

Top headlines:

Here's how the news is developing. All times Eastern.
Feb 16, 2024, 4:07 PM EST

Summary of penalties

Donald Trump and his adult sons were hit with millions in fines in the civil fraud trial and barred for years from being officers in New York companies. The judge said the frauds "shock the conscience."

Donald Trump: $354 million fine + approx. $100 million in interest
+ barred for 3 years from serving as officer of NY company
Donald Trump Jr.: $4 million fine
+ barred for 2 years from serving as officer of NY company
Eric Trump: $4 million fine
+ barred for 2 years from serving as officer of NY company
Former Trump Organization CFO Allen Weisselberg: $1 million fine
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company
Former Trump Organization controller Jeffrey McConney:
+ barred for 3 years from serving as officer of NY company
+ barred for life from financial management role in NY company

Oct 02, 2023, 9:43 AM EDT

Attorney general arrives at courthouse

New York Attorney General Letitia James has arrived at the courthouse in lower Manhattan.

"No matter how powerful you are, no matter how much money you think you may have, no one is above the law," James said to the cameras before entering the courthouse.

New York Attorney General Letitia James arrives at a Manhattan courthouse, for the trial of Former President Donald Trump, his adult sons, the Trump Organization and others in a civil fraud case, in New York City, Oct. 2, 2023.
Brendan Mcdermid/Reuters

"Today we will prove our case in court," she said. "Justice will prevail."

Demonstrators across the street from the courthouse cheered and applauded as the AG arrived.

Oct 02, 2023, 9:25 AM EDT

Trump on way to courthouse

Former President Trump is in a motorcade on his way to the courthouse in lower Manhattan where his fraud trial will get underway this morning.

Opening statements in the case are scheduled to get underway at 10 a.m. ET.

-John Santucci

Anti-Trump demonstrators hold up signs on the day of the start of the trial of former U.S. President Trump, his adult sons, the Trump Organization and others in a civil fraud case in New York City, Oct. 2, 2023.
Caitlin Ochs/Reuters

PHOTO: start of the trial of former President Trump, his adult sons, the Trump Organization and others in a civil fraud case at a Manhattan courthouse in New York City, Oct. 2, 2023.
A flag with an image of former President Donald Trump is pictured on the day of the start of the trial of former President Trump, his adult sons, the Trump Organization and others in a civil fraud case at a Manhattan courthouse in New York City, Oct. 2, 2023.
Shannon Stapleton/Reuters

Oct 02, 2023, 8:19 AM EDT

NY attorney general releases statement on 1st day of trial

New York Attorney General Letitia James released a statement on Monday just hours before the first day of trial in her fraud case against former President Donald Trump.

"For years, Donald Trump falsely inflated his net worth to enrich himself and cheat the system," James said. "We won the foundation of our case last week and proved that his purported net worth has long been rooted in incredible fraud. In this country, there are consequences for this type of persistent fraud, and we look forward to demonstrating the full extent of his fraud and illegality during trial."

"No matter how rich or powerful you are, there are not two sets of laws for people in this country," she added. "The rule of law must apply equally to everyone, and it is my responsibility to make sure that it does."

Security is set up for the start of the trial of former President Donald Trump, his adult sons, the Trump Organization and others in a civil fraud case at a Manhattan courthouse in New York City, Oct. 2, 2023.
Shannon Stapleton/Reuters

Oct 02, 2023, 8:14 AM EDT

Trial scheduled to begin at 10 a.m. ET

The People of the State of New York v. Donald J. Trump, et al, is scheduled to get underway in lower Manhattan at 10 a.m. with opening statements.

If opening statements are completed before the end of the day, the New York attorney general plans to begin her case by calling Trump's former Mazars USA accountant Donald Bender to the stand.

Mazars severed its business relationship with the former president last year after learning of the attorney general's findings during the AG's probe.

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